Answer:
cash inflow = $32,100
Explanation:
there is some information missing:
- accumulated depreciation 2016 (furniture) = $9,000
- depreciation expense 2017 (furniture) = $37,600
- accumulated depreciation 2017 (furniture) = $17,000
we must first determine the book value of the furniture which was sold:
total depreciation related to the sold furniture = $9,000 + $37,600 - $17,000 = $29,600
book value = $61,700 - $29,600 = $32,100
since the furniture was sold at book value, then the cash inflow = $32,100
Cash inflow refers to money being received or earned by the company, while cash outflows refer to money being paid by the company.
